Task: Financial Statements Analysis and Financial Models - ALL QUESTIONS NEEDS TO BE COMPLETED IN EXCEL - All calculations must be shown
Problem 1: During the year, the Senbet Discount Tire Company had gross sales of $1.2 million. The firm's cost of goods sold and selling expenses were $450,000 and $225,000, respectively. Senbet also had notes payable of $900,000. These notes carried an interest rate of 9%. Depreciation was $110,000. Senbet's tax rate was 35%.
a. What was Senbet's net income?
b. What was Senbet's operating cash flow?
Problem 2: EFN The most recent financial statements for Martin, Inc., are shown here:
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Income Statement
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Balance Sheet
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Sales
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$25,800
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Assets
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$113,000
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Debt
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$ 20,500
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Costs
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16,000
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|
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Equity
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92,500
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Taxable Income
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$ 9,000
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Total
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$113,000
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Total
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$113,000
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Taxes (34%)
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3,162
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|
|
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Net Income
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$ 6,138
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|
|
|
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Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,841.40 was paid, and Martin wishes to maintain a constant payout ratio. Next year's sales are projected to be $30,960. What external financing is needed?
Problem: 3: Sustainable Growth: Assuming the following ratios are constant, what is the sustainable growth rate?
Total Asset turnover = 1.90
Profit margin = 8.1%
Equity multiplier = 1.25
Payout ratio = 30%
Problem 4: Ratios and Fixed Assets: The Le Bleu Company has a ratio of long-term debt to total assets of .40 and a current ratio of 1.30. Current liabilities are $900, sales are $5,320, profit margin is 9.4%, and ROE is 18.2%. What is the amount of the firm's net fixed assets?